'Grey fleet' is a term used to describe vehicles that are owned by your employees that they have purchased themselves but are reimbursed by the business on a pence per mile basis.
It has been estimated that there are around four million vehicles that are part of a grey fleet in the UK which is three times more than the amount of company vehicles.
As a result it is highly important that opportunities are uncovered to reduce emissions as well as saving money.
Why Manage your Grey Fleet?
For many businesses, especially small ones it can be easy to not pay too much attention to the grey fleet however, it is actually crucial because there is often a considerable amount of money spent on reimbursing employees.
This means by managing the grey fleet there will be financial benefits which for a small business is vital.
Setting Standards for your Grey Fleet
It is important that you set some benchmarks when managing your grey fleet and then you can begin to create a strategy. You can start by asking the following questions:
- Who are the drivers?
- Are they qualified and fit to drive?
- What are the vehicles and what are they being used for?
- What are their carbon emissions?
- Are the vehicles suitable for business use?
- Do the vehicles fit with your brand image?
- Are the vehicles well maintained, have a valid MOT and insured for business use?
- What are the journeys being carried out in the vehicles?
- How often are these journeys made?
- What mileage rates will be paid?
- Who authorises the travel?
- Who authorises the claims?
- Who has the final responsibility?
If you can answer these questions then the data already collected on your grey fleet is adequate. If not data collection procedures will need to be reviewed and a new system will have to be established.
Creating your Policy
Any grey fleet policy needs to include statements regarding the driver, the vehicle and the journey in accordance with health and safety legislation and driving at work guidance.
The Driver – It is important for the business to be satisfied that each driver is eligible to drive. This means carrying out regular checks that each driver has a valid licence and has not been disqualified.
It is prudent to carry out these checks annually and could be included into the appraisal process. It is also important that each driver’s insurance documents are checked because as a business you do not need motor fleet insurance for the grey fleet.
As a result it is important that each vehicle has the appropriate insurance documents and the responsibility of this falls to the driver.
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